Read the full stored bill text
Req. No. 3224 Page 1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
SENATE BILL 2057 By: Frix
AS INTRODUCED
An Act relating to ad valorem tax; amending 68 O.S.
2021, Sections 2802 and 2803, which relate to
definitions and classification of property; defining
term; expanding classifications of property for
purposes of ad valorem taxation; updating statutory
language; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 2802, is
amended to read as follows:
Section 2802. As used in Section 2801 et seq. of this title:
1. “Accepted standards for mass appraisal practice” means those
standards for the collection and analysis of information about
taxable properties within a taxing jurisdiction permitting the
accurate estimate of fair cash value for similar properties in the
jurisdiction either without direct observation of such similar
properties or without direct sales price information for such
similar properties using a reliable statistical or other method to
estimate the values of such properties;
Req. No. 3224 Page 2
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
2. “Additional homestead exemption” means the exemption
provided by Section 2890 of this title;
3. “Assessor” means the county assessor and, unless the context
clearly requires otherwise, deputy assessors and persons employed by
the county assessor in performance of duties imposed by law;
4. “Assess and value” means to establish the fair cash value
and taxable fair cash value of taxable real and personal property
pursuant to requirements of law;
5. “Assessed valuation” or “assessed value” means the
percentage of the fair cash value of personal property, or the
percentage of the taxable fair cash value of real property, pursuant
to the provisions of Sections 8 and 8B of Article X of the Oklahoma
Constitution, either of individual items of personal property,
parcels of real property or the aggregate total of such individual
taxable items or parcels within a jurisdiction;
6. “Assessment percentage” means the percentage applied to
personal property and real property pursuant to Section 8 of Article
X of the Oklahoma Constitution;
7. “Assessment ratio” means the relationship between assessed
value and taxable fair cash value for a county or for use categories
within a county expressed as a percentage determined in the annual
equalization ratio study;
Req. No. 3224 Page 3
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
8. “Assessment roll” means a computerized or noncomputerized
record required by law to be kept by the county assessor and
containing information about property within a taxing jurisdiction;
9. “Assessment year” means the year beginning January 1 of each
calendar year and ending on December 31 preceding the following
January 1 assessment date;
10. “Business assets” means the nonresidential personal
property of a taxpayer, excluding the personal property of an
agricultural operation, including, but not limited to, implements of
husbandry and attachments, machinery, livestock, and improvements to
agricultural land, boat docks, and airplane hangers;
11. “Circuit breaker” means the form of property tax relief
provided by Sections 2904 through 2911 of this title;
11. 12. “Class of subjects” means a category of property
specifically designated pursuant to provisions of the Oklahoma
Constitution for purposes of ad valorem taxation;
12. 13. “Code” means the Ad Valorem Tax Code, Section 2801 et
seq. of this title;
13. 14. “Coefficient of dispersion” means a statistical measure
of assessment uniformity for a category of property or for all
property within a taxing jurisdiction;
14. 15. “Confidence level” means a statistical procedure for
determining the degree of reliability for use in reporting the
assessment ratio for a taxing jurisdiction;
Req. No. 3224 Page 4
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
15. 16. “Cost approach” means a method used to establish the
fair cash value of property involving an estimate of current
construction cost of improvements, subtracting accrued depreciation
including any loss in value that may be caused by physical
deterioration, functional obsolescence or economic obsolescence and
adding the value of the land.
a. Physical deterioration is a cause of depreciation that
is a loss in value due to ordinary wear and tear and
the forces of nature.
b. Functional or internal obsolescence is the loss in
value of a property resulting from changes in tastes,
preferences, technical innovations or market
standards.
c. Economic or external obsolescence is a cause of
depreciation that is a loss in value as a result of
impairment in utility and desirability caused by
factors outside the boundaries of the property or loss
of value in a property (relative, relative to the cost
of replacing it with a property of equal utility),
utility that stems from factors external to the
property;
16. 17. “County board of equalization” means the board which,
upon hearing competent evidence, has the authority to correct and
adjust the assessment rolls in its respective county to conform to
Req. No. 3224 Page 5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
fair cash value and such other responsibilities as prescribed in
Section 2801 et seq. of this title;
17. 18. “Equalization” means the process for making adjustments
to taxable property values within a county by analyzing the
relationships between assessed values and fair cash values in one or
more use categories within the county or between counties by
analyzing the relationship between assessed value and fair cash
value in each county;
18. 19. “Equalization ratio study” means the analysis of the
relationships between assessed values and fair cash values in the
manner provided by law;
19. 20. “Fair cash value” or “market value” means the value or
price at which a willing buyer would purchase property and a willing
seller would sell property if both parties are knowledgeable about
the property and its uses and if neither party is under any undue
pressure to buy or sell and for real property shall mean the value
for the highest and best use for which such property was actually
used, or was previously classified for use, during the calendar year
next preceding the applicable January 1 assessment date;
20. 21. “Homestead exemption” means the reduction in the
taxable value of a homestead as authorized by law;
21. 22. “Income and expense approach” means a method to
estimate fair cash value of a property by determining the present
value of the projected income stream;
Req. No. 3224 Page 6
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
22. 23. “List and assess” means the process by which taxable
property is discovered, its description recorded for purposes of ad
valorem taxation and its fair cash value and taxable fair cash value
are established;
23. 24. “Mill” or “millage” means the rate of tax imposed upon
taxable value. One (1) mill equals One Dollar ($1.00) of tax for
each One Thousand Dollars ($1,000.00) of taxable value;
24. 25. “Multiple regression analysis” means a statistical
technique for estimating unknown data on the basis of known and
available data;
25. 26. “Parcel” means a contiguous area of land described in a
single description by a deed or other instrument or as one of a
number of lots on a plat or plan, separately owned and capable of
being separately conveyed;
26. 27. “Sales comparison approach” means the collection,
verification, and screening of sales data, stratification of sales
information for purposes of comparison and use of such information
to establish the fair cash value of taxable property;
27. 28. “State Board of Equalization” means the Board
responsible for valuation of railroad, airline and public service
corporation property and the adjustment and equalization of all
property values both centrally and locally assessed;
28. 29. “Taxable value” means the percentage of the fair cash
value of personal property or the taxable fair cash value of real
Req. No. 3224 Page 7
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
property, less applicable exemptions, upon which an ad valorem tax
rate is levied pursuant to the provisions of Section 8 and Section
8B of Article X of the Oklahoma Constitution;
29. 30. “Taxable fair cash value” means the fair cash value of
locally assessed real property as capped pursuant to Section 8B of
Article X of the Oklahoma Constitution;
30. 31. “Use category” means a subcategory of real property,
that is either agricultural use, residential use or
commercial/industrial use but does not and shall not constitute a
class of subjects within the meaning of the Oklahoma Constitution
for purposes of ad valorem taxation;
31. 32. “Use value” means the basis for establishing fair cash
value of real property pursuant to the requirement of Section 8 of
Article X of the Oklahoma Constitution; and
32. 33. “Visual inspection program” means the program required
in order to gather data about real property from physical
examination of the property and improvements in order to establish
the fair cash values of properties so inspected at least once each
four (4) years and the fair cash values of similar properties on an
annual basis.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 2803, is
amended to read as follows:
Section 2803. A. The Legislature, pursuant to authority of
Article X, Section 22 of Article X of the Oklahoma Constitution,
Req. No. 3224 Page 8
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
hereby classifies the following types of property for purposes of ad
valorem taxation:
1. Real property;
2. Personal property, except as provided in paragraph
paragraphs 3 and 6 of this subsection;
3. Personal property which is household goods of the head of
families and livestock employed in support of the family in those
counties which have exempted such property pursuant to subsection
(b) B of Section 6 of Article X of the Oklahoma Constitution;
4. Public service corporation property; and
5. Railroad and air carrier property; and
6. Business assets.
B. Valuation of each class of subjects shall be made by a
method appropriate for each class or any subclass thereof, as
established by the Ad Valorem Division of the Oklahoma Tax
Commission.
C. Classification as provided by this section shall require
uniform treatment of each item within a class or any subclass as
provided in Article X, Section 5 of Article X of the Oklahoma
Constitution.
SECTION 3. This act shall become effective January 1, 2027.
60-2-3224 QD 1/15/2026 11:20:24 AM